How to interpret a County Report

[Michael Clayborne]

Hello BP!

I am currently working on improving my ability to analyze prospective deals. I've been through the Ultimate Beginners Guide here on BP and it explained a lot! Also reading through the forums and blogs has provided me with a greater ability to find information and formulate actual data vs. pro formula found on Zillow and Realtor.com. 

But I am having trouble interpreting the property taxes from the County Records Cards provided for properties, mainly property tax assessments and assessment percentage. 

Is this property tax (Taxable) reported as a yearly amount? And do I just take that amount and divide by 12 to get the monthly amount? 

What is gross and net assessed value, and how do they compare to taxable and market valuations?

Also how normal is it for the Market valuation on the county's books to be out of date?

Thank you for all your time and assistance in helping a newbie off the ground!

Best,

Michael 

[Carrianne Mucho]

Originally posted by @Michael Clayborne:

Hello BP!

I am currently working on improving my ability to analyze prospective deals. I've been through the Ultimate Beginners Guide here on BP and it explained a lot! Also reading through the forums and blogs has provided me with a greater ability to find information and formulate actual data vs. pro formula found on Zillow and Realtor.com. 

But I am having trouble interpreting the property taxes from the County Records Cards provided for properties, mainly property tax assessments and assessment percentage. 

Is this property tax (Taxable) reported as a yearly amount? And do I just take that amount and divide by 12 to get the monthly amount? 

What is gross and net assessed value, and how do they compare to taxable and market valuations?

Also how normal is it for the Market valuation on the county's books to be out of date?

Thank you for all your time and assistance in helping a newbie off the ground!

Best,

Michael 

I can't speak to how property taxes are handled in OK but I am very familiar with California's property tax system so I will speak to that and perhaps it will help you as a starting point for your research. In California, it is very common that the assessed value has no relation to market value, mostly depending on how long the property has been owned. Generally, and I think this applies to most locations, when a property changes hands, it will be re-assessed (appraised by the assessor) at fair market value and taxes for the new owner would be based on that amount. 

A gross value is likely the base assessment before any discounts.  In California, the most common "discount" is a homeowner's exemption which decreases the (gross) assessed value by $7,000 (for a net assessed value) saving the taxpayer about $70 per year.  

You might try searching your County's website for assessment information.  Some counties near me have a lot of useful information online.  Or, you might even try calling or visiting your local assessor's office.  They might be surprisingly helpful.  

Just as you should never assume that a Zillow estimate is correct market value, you should never assume that the assessed value is indicative of market value.  Even in a county that regularly updates their assessments, that property may not have been physically inspected and appraised in many years.